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Do a basic assessment of where your institution is at, and identify the steps you need to take to implement an inclusive, local sourcing initiative
Leadership
- Leadership and the board have communicated organizational support
- Supply chain leadership is supportive of the program
- Supply chain managers and department heads with purchasing authority have been educated about local and inclusive purchasing goals and empowered to make program decisions
- Dedicated staff have been identified to manage organizational objectives
- A business case for local and inclusive sourcing has been developed, institutionalized, and communicated
Partnerships and Community Engagement
- Partnerships have been developed with local minority and women chambers of commerce and other local supplier diversity organizations
- Community-based organizations working within the target geography and on issues of small businesses, and/or cooperative development, support, and/or acceleration have been identified
- Other institutions with overlapping supply chain needs have been identified as partners
- Focus groups, interviews, or other community engagement processes have identified community priorities around local and inclusive purchasing
- Hospital leadership is represented on the board of local supplier diversity, business development and inclusive economic development organizations
- Community advisory board is positioned to help guide the effort and ensure that it is “with” and “by” and not just “for” the community
Data and Reporting Infrastructure
- Current software system can track spending by zip code or within target geography
- Current software system can track spending by business certification type
- Reports on the status of local and diverse spending can be regularly generated
- Reports can be generated for specific spend categories (construction, facilities, medical supplies, etc.).
- Data can be collected on the growth of local and diverse vendors over time (size of businesses, number of jobs created, etc.)
- Future supply chain needs and projections can be assessed and communicated to partners
Staffing and Interdepartmental Infrastructure
- A specific position oversees the local and diverse procurement program and coordinates other members of the supply chain department, as well as department managers with purchasing power
- Representatives from the supply chain department, departmental procurement, nutrition services, the legal department, community engagement, and the office of diversity meet regularly or are part of a local purchasing taskforce
- The legal department has provided feedback on contracting and Request for Proposals (RFPs) language to ensure they comply with guidelines around competitiveness
- The legal and/or risk departments have provided feedback on providing assistance for bonding, retainage, insurance, and other processes that may be difficult for small businesses to comply with individually
Other Strategic Goals
- Increasing local and diverse spending is listed as a strategic priority, with specific goals for different categories of goods and services, and construction
- Local and inclusive purchasing programs are linked to overall organizational diversity and inclusion goals
- Local and inclusive purchasing programs are linked to overall organizational sustainability goals
- Local and inclusive purchasing programs are linked to community health goals, such as healthy eating initiatives
Supply Chain Practices
- Bidding opportunities are communicated regularly to partners such as local minority chambers of commerce
- Local and inclusive purchasing goals are embedded within RFPs and contracts with tier-one vendors
- Invoicing periods can be adjusted to accommodate vendors who need to be paid on a faster time schedule due to capital constraints
- Assistance is provided for electronic invoicing and other technological requirements that may be a barrier for small businesses
- Participation of a certain number of local and/or diverse vendors is mandated for bids above a certain threshold
- Vendors have the opportunity to participate in a mentor-protégé program to grow their capacity, or other vendor education programs
- Technical assistance is provided for issues such as bonding and retainage, insurance, and healthcare-specific product specifications
Staffing and Accountability
- There is a stated and specific goal for local and diverse purchasing
- Clear definitions for local and diverse vendors exist
- Supply chain managers are evaluated based on meeting local and diverse spending goals
- Data on progress and contract compliance is reported to the board and c-suite leadership on a regular basis
- Purchases over an established threshold are automatically reviewed by the board
Scaling Local Impact and Building Community Wealth
- Partnerships are developed with other anchor institutions to increase demand for local and diverse vendors
- Investments are made to support the small and diverse business community
- Support is given in particular to employee-owned business incubation and social enterprise development projects
- Provisions regarding living wages are included in RFPs
- Provisions regarding inclusive, local hiring are included in RFPs
- Provisions regarding local and diverse contracting are included in RFPs
- Compliance documentation on inclusive, local hiring and purchasing from vendors is required
- Create department and staff positions dedicated to inclusive, local sourcing
- Require that local and/or diverse vendors are considered in Request for Proposal (RFP) pool
- Make inclusive, local sourcing an explicit goal...
- Adjust payment periods and invoicing processes to accommodate small businesses
- Incorporate local and diverse spending objectives into job descriptions and evaluations for supply chain
- Communicate with community partners...
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